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Not Renewing on Time
Amongst the most common mistakes during car insurance renewal is not renewing on time, which leads to a lapsed policy. As a result, you lose the essential coverage that financially protects you & your car in case of an unfortunate accident. In addition, it is illegal in India to drive without valid car insurance coverage. Consequently, you could face hefty penalties and even imprisonment.
Tip: Set reminders for policy renewal ahead of its expiry to maintain seamless coverage without any interruption.
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Not Comparing Different Quotes
When renewing your car insurance, sticking with your existing insurer is not necessary. Insurers keep making changes to their offerings occasionally, so a plan that worked for you in the previous year may no longer be your best option. Hence, it is a smart choice to compare multiple policies by various insurers- you could find better car insurance coverage at a lower price.
Tip: At the time of your car insurance renewal, it is a good idea to visit online platforms like Policybazaar.com. Quickly compare various plans and understand their key features, benefits, & premium prices, so you can choose the right car insurance policy based on your requirements!
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Selecting Inappropriate IDV (Insured Declared Value)
The IDV is the current market worth of a vehicle. It is the maximum amount your insurer will pay in case your vehicle gets stolen or damaged beyond repair. While selecting a higher IDV will make you pay more in premiums than it's worth, a lower IDV will not pay you enough in case of a loss or theft.
Tip: Select the IDV that reflects your car's current market value for a great balance between car insurance coverage costs and premiums.
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Not Utilising the NCB (No Claim Bonus)
If you have not made any claims during your policy tenure, you're entitled to an NCB, which is a discount on your renewal premium. Neglecting to claim your NCB means you're overpaying.
Tip: Make sure your NCB is accurately represented at the time of renewal. If you change insurers, ask for an NCB certificate from your old company.
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Picking Wrong Coverage
Weighing up the pros and cons, choosing only the very basic car insurance coverage can cut costs to begin with but can result in high out-of-pocket costs in a crash. On the contrary, over-insuring can lead to you paying more than required for coverage.
Tip: Consider your car's age, usage, and your needs while choosing coverage-whether third-party or comprehensive.
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Neglecting Policy Details and Add-ons
When you decide to renew your car insurance, you must carefully go through the policy inclusions & exclusions. Failing to do so can result in keeping the unnecessary add-ons or missing out on important ones. For example, if your vehicle is getting old, you may not require some of the covers, while newer cars can gain from add-ons such as the zero depreciation add-on.
Tip: Review your car policy coverage and choose add-on covers that best suit your needs.
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Failing to Update Personal or Vehicle Details
Whenever there's any change in your driving behaviour, any car modification, or where you live, it has a direct impact on your car insurance premium & coverage. In case your insurer doesn't learn of these changes, your claim can get rejected, or even your policy can be cancelled.
Tip: Always keep your insurer informed about any changes in your personal or vehicle details to ensure continued protection.
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Overlooking Discounts & Offers
Insurers frequently offer discounts on renewal premiums, including for installing an ARAI-approved anti-theft device or being a member of a certain car association. If you don't ask your insurer about any available discounts or offers, you could miss out on significant savings.
Tip: When renewing your car insurance, reach out to your insurer to inquire for any discounts or offers that are available.
